TOKYO, Sept 19 (Reuters) - Japanese government bond

(JGB) yields rose on Thursday, tracking their U.S. peers higher,

after the Federal Reserve delivered a larger-than-usual

reduction in interest rates at the conclusion of its two-day

meeting.

The 10-year JGB yield was up 2.5 basis points

(bps) at 0.845%, as of 0105 GMT, after briefly touching 0.855%

following an overnight rise in U.S. Treasury yields.

The U.S. Treasury yield curve on Wednesday touched its

steepest level since July 2022 after the Fed cut interest rates

by 50 bps as the central bank grappled with a weakening labour

market.

Speaking at a press conference, Fed Chair Jerome Powell said

the oversized cut was meant to show policymakers' commitment to

sustaining a low unemployment rate now that inflation has eased.

Elsewhere on the JGB curve, the 20-year JGB yield

rose 3 bps to 1.665%, while the 30-year JGB yield

climbed 4 bps to 2.025%.

The five-year yield ticked 1.5 bps higher to

0.49%.

The two-year JGB yield had yet to trade.

Benchmark 10-year JGB futures fell 0.2 points to

144.68 yen.